EToys.com
Encyclopedia
eToys.com is a retail website that sells toys via the Internet
. It was established by a startup company
of the same name during the dotcom boom, but the company went bankrupt towards the end of the boom, after which the site went through a number of changes of ownership, and was acquired by Toys "R" Us in February 2009.
. Shares were being issued at a mere $20. At the end of the first day of trading, the stocks closed in at $76 a share.
Emarketer was once quoted as saying; "Put simply, eToys is the benchmark against which all other toy sites are measured." In 1999, the company was involved in a high-profile dispute with Swiss art site etoy
. EToys attempted to seize the etoy.com domain from etoy on the grounds that it was confusingly similar to its own domain, but it relented after widespread Internet outrage.
acquired the bulk of eToys' remaining assets for $5 million. Bain Capital
owns KB Toys. The law firm Traub, Bonacquist & Fox (TBF) represented the creditors in the bankruptcy. Paul Traub, a partner in the firm, had shortly before formed a company called Asset Disposition Advisors, LLC with Barry Gold. This relationship became controversial when Gold was appointed CEO of eToys. Some complained there was a conflict of interest, though a judge later found no fault.
in two separate bankruptcy
auctions, then later sold to D.E. Shaw, a New York based hedge fund
. The eToys.com website was eventually reopened by eToys Direct Inc., a descendant of Internet startup and KB Toys partner Brainplay.com, and a subsidiary of Parent Company. It continued to market toys by mail order under the eToys name through both the website and printed catalogs. Parent Company and nine of its subsidiaries including eToys Direct filed for Chapter 11 bankruptcy on 22 December 2008. eToys.com was acquired by Toys "R" Us in February 2009.
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
. It was established by a startup company
Startup company
A startup company or startup is a company with a limited operating history. These companies, generally newly created, are in a phase of development and research for markets...
of the same name during the dotcom boom, but the company went bankrupt towards the end of the boom, after which the site went through a number of changes of ownership, and was acquired by Toys "R" Us in February 2009.
History
eToys was launched in 1997. In 1999, eToys eventually presented their Initial Public OfferingInitial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
. Shares were being issued at a mere $20. At the end of the first day of trading, the stocks closed in at $76 a share.
Emarketer was once quoted as saying; "Put simply, eToys is the benchmark against which all other toy sites are measured." In 1999, the company was involved in a high-profile dispute with Swiss art site etoy
Etoy
Etoy is a European digital art group. Etoy won several international awards including the Prix Ars Electronica in 1996. Their main slogan is: "leaving reality behind."...
. EToys attempted to seize the etoy.com domain from etoy on the grounds that it was confusingly similar to its own domain, but it relented after widespread Internet outrage.
Chapter 11 bankruptcy
Around March 7, 2001, The Wall Street Journal reported that KB ToysKB Toys
K·B Toys was a chain of mall-based retail toy stores in the United States. It was founded in 1922 by the Kaufman brothers. K·B operated 605 stores in 44 U.S. states, Puerto Rico as well as Guam. It was privately held in Pittsfield, Massachusetts...
acquired the bulk of eToys' remaining assets for $5 million. Bain Capital
Bain Capital
Bain Capital LLC is a Boston-based private equity firm founded in 1984 by partners from the consulting firm Bain & Company. Originally conceived as an early-stage, growth-oriented investment fund, Bain Capital today manages approximately $65 billion in assets, and its strategies include private...
owns KB Toys. The law firm Traub, Bonacquist & Fox (TBF) represented the creditors in the bankruptcy. Paul Traub, a partner in the firm, had shortly before formed a company called Asset Disposition Advisors, LLC with Barry Gold. This relationship became controversial when Gold was appointed CEO of eToys. Some complained there was a conflict of interest, though a judge later found no fault.
Subsequent ownership
Nearly all the eToys assets were acquired by KB ToysKB Toys
K·B Toys was a chain of mall-based retail toy stores in the United States. It was founded in 1922 by the Kaufman brothers. K·B operated 605 stores in 44 U.S. states, Puerto Rico as well as Guam. It was privately held in Pittsfield, Massachusetts...
in two separate bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
auctions, then later sold to D.E. Shaw, a New York based hedge fund
Hedge fund
A hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
. The eToys.com website was eventually reopened by eToys Direct Inc., a descendant of Internet startup and KB Toys partner Brainplay.com, and a subsidiary of Parent Company. It continued to market toys by mail order under the eToys name through both the website and printed catalogs. Parent Company and nine of its subsidiaries including eToys Direct filed for Chapter 11 bankruptcy on 22 December 2008. eToys.com was acquired by Toys "R" Us in February 2009.